Urban Renewal and Inequality: Evidence from Chicago's Public Housing Demolitions

65 Pages Posted: 9 Jan 2023 Last revised: 14 Apr 2023

See all articles by Milena Almagro

Milena Almagro

University of Chicago - Booth School of Business

Eric Chyn

University of Texas at Austin

Bryan Stuart

Federal Reserve Banks - Federal Reserve Bank of Philadelphia

Multiple version iconThere are 3 versions of this paper

Date Written: January 2023

Abstract

This paper studies one of the largest spatially targeted redevelopment efforts implemented in the United States: public housing demolitions sponsored by the HOPE VI program. Focusing on Chicago, we study welfare and racial disparities in the impacts of demolitions using a structural model that features a rich set of equilibrium responses. Our results indicate that demolitions had notably heterogeneous effects where welfare decreased for low-income minority households and increased for White households. Counterfactual simulations explore how housing policy mitigates negative effects of demolitions and suggest that increased public housing site redevelopment is the most effective policy for reducing racial inequality.

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Suggested Citation

Almagro, Milena and Chyn, Eric and Stuart, Bryan, Urban Renewal and Inequality: Evidence from Chicago's Public Housing Demolitions (January 2023). NBER Working Paper No. w30838, Available at SSRN: https://ssrn.com/abstract=4320586

Milena Almagro (Contact Author)

University of Chicago - Booth School of Business ( email )

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Eric Chyn

University of Texas at Austin ( email )

TX

Bryan Stuart

Federal Reserve Banks - Federal Reserve Bank of Philadelphia ( email )

Ten Independence Mall
Philadelphia, PA 19106-1574
United States

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